Bailout lawsuit: ‘We’ll pass,’ says AIG board

American International Group Inc.’s AIG directors decided Wednesday not to participate in a lawsuit that accuses the U.S. government of taking advantage of the company in its rescue from the financial crisis, according to two people briefed on the decision.

Mindful of the potential backlash, a number of AIG directors entered Wednesday’s meeting leaning toward rejecting Starr’s request to join its suit, people familiar with their thinking said. Endorsing Starr’s action, the people said, could hinder AIG’s efforts to rebuild its reputation. .